Israel approves dry ports to ease congestion and strengthen supply chains

Inland logistics shift gains momentum

Under the proposal, Israel Ports Company will lead preparations for the project, including:

• Identifying strategic inland locations
• Assessing transport connectivity, particularly rail links
• Developing a commercial and operational model

The initiative is designed to move key logistics activities away from congested seaports into the hinterland.

What are dry ports and why they matter

A dry port is an inland logistics hub connected to seaports by rail or road, where cargo can be:

• Cleared by customs
• Stored and distributed
• Processed away from port terminals

This model is widely used globally, including at hubs like Port of Duisburg, to improve efficiency and reduce port bottlenecks.

Addressing congestion at major ports

The move is expected to relieve pressure at Israel’s key gateways, including:

• Port of Ashdod
• Port of Haifa

By shifting cargo handling inland, authorities aim to:

• Reduce truck congestion at port gates
• Improve container turnaround times
• Increase storage capacity.

Government highlights strategic importance

Transport Minister Miri Regev described the initiative as a “historic strategic move” to improve efficiency and reduce logistics costs.

Meanwhile, IPC CEO Pinhas Tzruya emphasized the long-term impact:

The project will strengthen economic independence and ensure continuity of trade operations.

Officials also highlighted the role of dry ports in maintaining supply chain continuity during emergencies, particularly by dispersing logistics activity across multiple locations.

Key challenges ahead

Despite strong support, several factors will determine the project’s success:

• Efficient rail connections between ports and inland hubs
• Competitive cost structures versus traditional port handling
• Coordination with customs authorities for bonded cargo movement

Industry sources note that without cost and time advantages, cargo owners may be reluctant to shift operations inland.

Outlook

The development of dry ports marks a significant step toward modernizing Israel’s logistics infrastructure.

If successfully implemented, the initiative could:

• Improve port efficiency and capacity
• Reduce urban congestion near ports
• Strengthen national supply chain resilience

However, the effectiveness of the model will ultimately depend on execution, particularly in transport integration and economic viability.